There are many different types of insurance that we need in our lives. You may be wondering if each of them is absolutely necessary, including condo insurance. You may also be questioning exactly what it covers and how much coverage you need.
Here, we’ll take a closer look at why condo insurance can be so important and answer all the questions you may have. By the end, you should be able to make an informed decision about whether condo insurance is right for you.
Do I Need Condo Insurance?
The simple answer is yes, you do need condo insurance. While your condominium will have a master policy, condo insurance will fill in the gaps. This will ensure you’re adequately protected should something happen in your condo.
If a claim is made on your property without insurance, then you can be liable for huge financial costs. Added to this, condo insurance can also be required from mortgage lenders and condominium corporations before you’re allowed to buy the property.
Related Article: https://bucklerins.com/what-does-condo-insurance-cover/
Why Condo Insurance Is Required
As we mentioned, all condo owners will need to have a policy but why is that? Let’s take a look into exactly why condo insurance is so important.
1. Protection of Personal Property
You need condo insurance if you want to protect your personal belongings. The condo association’s master policy won’t cover you for any item inside your condo. Whether it’s furniture, electronics, or any other type of valuables, replacing them is your responsibility.
There are many things that can cause damage to your home, especially fire, water damage, and theft. With insurance, you’ll be able to replace these belongings without bearing the full financial burden.
2. Interior Coverage
The condo insurance can also cover the interior of your unit, such as walls, floors, and fixtures. It’s important to find out whether or not these are covered by the unit’s master policy. Some will cover it, whereas others won’t. If your condominium doesn’t, then it’s vital to get this type of cover.
3. Liability Protection
Another factor that can be financially damaging is liability claims. This will give you protection if someone injures themselves on your property and decides to sue for damages. This will not only cover the settlement of the claim but also any legal fees or medical expenses.
4. Loss of Use Coverage
There may be an occasion when your condo becomes uninhabitable due to unforeseen circumstances such as fire or water damage. If so, your condo insurance can cover the cost of temporary housing along with other expenses.
5. Loss Assessment Coverage
The condo association will have a financial limit on its master policy. If damages exceed that limit, they can ask residents to pay their share of the remaining costs. This type of insurance will help to cover your share and make sure you’re not out of pocket.
How Condo Insurance Differs from Other Policies
It’s good to know how condo insurance differs from other closely related types of policies. Let’s look at some key differences.
Master Policy vs. Condo Insurance – The condo association’s master policy is there to protect the building’s structure. It will also cover everything outside of the individual condos, including common areas and liability. You don’t need to worry about insuring anything outside of your property.
Condo Insurance vs. Homeowners Insurance – Homeowners insurance covers many things that condo insurance does but with a few key differences. They will both cover your living space and belongings, but homeowners insurance will also cover the structure of the home. This is the main reason why condo insurance is significantly cheaper.
Related Article: https://bucklerins.com/how-much-is-condo-insurance-in-toronto/
Assessing Your Coverage Needs
Not every condo insurance policy is the same. Here are the things you should be considering before accepting a policy.
Property Value – As with any type of insurance, the more valuable something is, the more expensive it is to insure. You should complete an itinerary of your belongings and make sure that the policy limit is suitable for your needs.
Interior Upgrades – If you’ve made significant upgrades to your property, you’ll need this to be covered as well. This includes the likes of new countertops, flooring or customized cabinets.
Liability Risk – If you frequently have guests, then your liability costs are going to be higher. Again, make sure your coverage limits reflect this risk.
Master Policy – Check whether or not the master policy covers fixtures and fittings or not. If it doesn’t, make sure your condo insurance does. Also, find out if you need loss assessment coverage.
Getting the Right Condo Insurance Policy
As we’ve mentioned, it’s important to know what the policy limits are and ensure they aren’t low enough to make the policy a financial risk. Beyond this, you’ll also want to consider your deductible and any additional bits of coverage you need.
Insurers all assess risk differently, and therefore, it’s important to shop around to find the right deal. It’s very unlikely the first quote you get will be the best one. A broker can help you do this while also providing expert advice.
Final Thoughts
The simple fact is that you need condo insurance. Even if it’s not required by the lender or association, it would be financially reckless not to have this type of policy. Thankfully, premiums are affordable, so it won’t be much of a financial burden.
It’s important to look through your policy and ensure the terms are right for your needs. If you’re in need of condo insurance, then give Buckler Insurance a call. We’ll happily go through your circumstances to find the perfect policy for you.
